Explanation:
Let A = {HKJ overperforms 10%} and B = {YYG overperforms 10%}
Therefore, P(A) = 0.35, P(B) = 0.45, and P(A ∩ B) = 0.15
We want to determine P(A ∪ B);
The addition rule states that
P(A ∪ B) = P(A) + P(B) − P(A ∩ B)
Hence,
P(A ∪ B) = 0.35 + 0.45 − 0.15 = 0.65
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Q.50 A portfolio manager has recently invested in two stocks - HKJ and YYG. The probability that HKJ posts a return greater than 10% this year is 0.35, and the probability that YYG pots a return greater than 10% is 0.45. Given that the probability that both stocks post returns greater than 10% this year is 0.15, what is the probability that either HKJ or the YYG posts returns greater than 10% this year?
A
0.75
B
0.55
C
0.95
D
0.65
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